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Highfield Resources Ltd.
Summary
| Project: | Muga | |
|---|---|---|
| Deposit: | Muga | |
| Location: | Spain | |
| Commodities: | Potash | |
| Date: | 10/15/2018 | |
| Report Code: | JORC | |
| Report Type: | Feasibility Study | |
| Project Stage: | Pursuing Feasibility Study | |
| Report details: | 15-10-2018: Highfield Resources Ltd. announces a Feasibility Study report for its Muga deposit at the Muga project. Project updated results incl. pre-tax NPV of EUR $1159M (8%), IRR of 23%, 27yr LOM at project. Highfield Resources (ASX: HFR) (“Highfield” | |
| Resources: | (Resource, Total): 267.4Mt @ 12.36% K2O, 0.4% MgO, 26.9% Na2O | |
| CP/QP: | [Overall Report]: Peter Albert (Internal) | |
| ABSTRACT: | Highfield Resources (ASX: HFR) (“Highfield” or “the Company”) is pleased to provide a project update on the Company’s flagship Muga Potash Project (“Muga” or “the Project”). Following the Optimised Feasibility Study of 2015, the Company is pleased to announce a Project update with a revision to the capital cost (capex), operating cost (opex), mine plan and financial outcomes. The capital cost estimate for phase 1 of the Project to produce approximately 500,000 tonnes of Muriate of Potash (“MOP”) per annum is €342 million, excluding approximately €23 million spent to date. This capex includes improvements to the mine design incorporating twin declines to access the ore body, conventional room-and-pillar extraction with a chevron development pattern suited to potash mining, a reconfigured process plant based on recent metallurgical testwork, a review of marketing and sales strategy, and a reassessment of supporting logistics and infrastructure requirements. The capex to bring the mine to its full operating capacity of approximately 1 million tonnes per annum of MOP is estimated to be an additional €199 million. The operating cost for the Project at full capacity is forecasted to be €104/t on a C1 basis over the life of mine, which includes a salt by-product credit of €12/t. The primary market for phase 1 of the Muga Mine MOP product is likely to be Southern Europe and for phase 2 a conservative estimate of sales to other parts of Europe and exports outside of Europe has been assumed. The net result positions Muga as potentially one of the highest margin potash mines globally. The financial outcomes of the revised mine plan, capex, opex | |
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